Landmark Quarter for Indian Solar: 10 GW Capacity Added in Q1 2024

India’s Solar Power Surges with Record 10 GW Capacity Addition in Q1 2024

India’s solar power sector has achieved a remarkable feat, adding a record-breaking 10 GW of capacity in the first quarter of 2024. This surpasses the entire capacity addition of 2023, highlighting a significant acceleration in the country’s renewable energy transition.

This 10 GW addition marks the highest quarterly increase ever recorded, significantly exceeding the 2 GW added in Q1 2023. Notably, solar power contributed a substantial 66% (15.2 GW) to the total new power capacity added in Q1 2024. Large-scale solar projects accounted for the majority of this growth, with 9.7 GW installed, including 1.8 GW from open-access projects.

Several factors fueled this surge in solar installations. Firstly, the commissioning of delayed projects that had received extensions due to high module prices in previous quarters played a significant role. Additionally, developers benefited from falling module prices, the suspension of the Approved List of Models and Manufacturers (ALMM) order, and the approval of grid connectivity for projects previously stalled by habitat concerns for the Great Indian Bustard (GIB), according to a Mercom India report.

Top States by Solar Additions in Q1 2024

Rajasthan and Gujarat emerged as the frontrunners in large-scale solar installations, contributing 38% and 35% of the capacity additions, respectively, in Q1 2024. Madhya Pradesh followed closely with an 8% share.

As of March 2024, India’s total installed solar capacity stands at 82 GW, representing a significant 18.5% of the country’s total installed power capacity and an impressive 43% of its total installed renewable energy capacity. Rajasthan leads the nation in cumulative installed large-scale solar capacity, accounting for 29% of the country’s total as of March 2024. Gujarat and Karnataka follow with 14% each.

Looking Ahead…

India’s pipeline for large-scale solar projects is robust, boasting 143 GW, with an additional 93 GW of projects tendered and pending auction at the end of Q1 2024. During Q1 2024 alone, tenders for 30.7 GW were announced, and solar projects totaling 25 GW were auctioned.

“There is a substantial pipeline of large-scale projects scheduled for 2024, positioning India for a record-breaking year by a significant margin,” stated Raj Prabhu, CEO of Mercom Capital Group.

Assuming stable policies, robust supply chains, and continued government support in auctioning projects and meeting targets, India is poised to become one of the top three solar markets globally. Notably, the average cost of large-scale solar projects has also decreased by 7% quarter-over-quarter and 28% year-over-year, significantly improving the internal rate of return on these projects.